Siemens to spin off chip business

Flotation hopes for sinking chip concern

The long and painful saga of Siemens’ semiconductor business continues to unfold. The German electronics giant has said it wants to spin off the chip concern as a separate division, with a view to eventually putting it up for a listing. The most recent chapter in the chip business’ history saw a failed attempt to get an MBO off the ground at the Siemens’ Tyneside factory. The reported £400 million bid came to nothing after Siemens management rejected the MBO offer for the site which at its height employed some 1,100 people. The plant shut down in August last year. It was set up with a £50 million subsidy from the UK government and after its initial failure, rumours began to circulate that it would be bought up by a consortium of Chinese companies. This also came to nothing. ®